Incentive-Based Regulation (RIIO Model)—Great Britain
The Office of Gas and Electricity Markets (Ofgem) regulates the transmission and distribution networks for gas and electricity in Great Britain (England, Wales, and Scotland).
The price control regulation is referred to as RIIO and is similar in concept to the Incentive-Based Regulation (IBR) in Peninsular Malaysia.
The price control is applied through an output-driven model that covers primary outputs as required by stakeholders (customers, regulators, etc.) and secondary outputs, which enable the targets.
Network companies submit an 8-year business plan for meeting the primary output targets and also cover the secondary outputs, which enable the primary targets.
The RIIO price control also enables innovation fund development through a share from the revenue of the network companies.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook